Strong US dollar appreciation due to actual needs
July 4th, 2010
The exchange rate of US dollar against dong has unexpectedly increased in recent days. The strong increase of the exchange rate is not blamed for speculations on the forex market, banking experts said adding that it is mainly because businesses are flocking to buy US dollars to prevent the shortages of the greenback in the end of the year.
Over the past more than one week, commercial banks have raised the US dollar/dong exchange rates.
Yesterday July 1, the exchange rate at some banks was up to 19,100 dong per US dollar (sale) and 19,050 dong per US dollar (purchase).
Compared with a week ago, the exchange rate has increased by approximately 105 dong/US dollar, compared to last weekend, the rate has one up by 80 dong/US dollar. But compared to earlier this week, the exchange rate has increased 45 dong/US dollar.
Commercial banks raising the US dollar/dong exchange rate immediately have affected the free forex market.
Yesterday afternoon July 1, the exchange rate on the free market was bought in at 19,070 dong/US dollar and sold out at 19,120 dong/US dollar. Compared to last weekend, the rate has increased by about 120 dong/US dollar.
Previously, over the past two months, the exchange rate has been in the range from 18,930 dong to 18,950 dong per US dollar.
According to forex analysts, the increase of the exchange rate is not due to speculation, but mostly came from the US dollar demand of enterprises.
Nguyen Thanh Toai, deputy general director of Asia Commercial Bank (ACB) analysed that on the market, there is a psychology of buying US dollars for reserves to repay foreign currency loans to banks by the end of this year.
According to Toai, several months ago, the average dong interest rate was much higher than the US dollar rate. Therefore, many businesses shifted to foreign currency loans. But, from now to the end of this year, many enterprises will have to repay banks foreign-currency loans.
Current, the US dollar deposit rates on the currency market were averaged at between 5.25 percent – 5.5 percent per year. The US dollar loan rate of state –owned commercial banks stays at 5.5-6.0 percent per annum for short term loans and 6.0-7.0 percent per annum for medium and long-terms, while those are 6.0-8.0 percent per annum and 6.5-8.0 percent per year respectively at commercial joint stock banks.
Vietnam+
July 4th, 2010
The exchange rate of US dollar against dong has unexpectedly increased in recent days. The strong increase of the exchange rate is not blamed for speculations on the forex market, banking experts said adding that it is mainly because businesses are flocking to buy US dollars to prevent the shortages of the greenback in the end of the year.
Over the past more than one week, commercial banks have raised the US dollar/dong exchange rates.
Yesterday July 1, the exchange rate at some banks was up to 19,100 dong per US dollar (sale) and 19,050 dong per US dollar (purchase).
Compared with a week ago, the exchange rate has increased by approximately 105 dong/US dollar, compared to last weekend, the rate has one up by 80 dong/US dollar. But compared to earlier this week, the exchange rate has increased 45 dong/US dollar.
Commercial banks raising the US dollar/dong exchange rate immediately have affected the free forex market.
Yesterday afternoon July 1, the exchange rate on the free market was bought in at 19,070 dong/US dollar and sold out at 19,120 dong/US dollar. Compared to last weekend, the rate has increased by about 120 dong/US dollar.
Previously, over the past two months, the exchange rate has been in the range from 18,930 dong to 18,950 dong per US dollar.
According to forex analysts, the increase of the exchange rate is not due to speculation, but mostly came from the US dollar demand of enterprises.
Nguyen Thanh Toai, deputy general director of Asia Commercial Bank (ACB) analysed that on the market, there is a psychology of buying US dollars for reserves to repay foreign currency loans to banks by the end of this year.
According to Toai, several months ago, the average dong interest rate was much higher than the US dollar rate. Therefore, many businesses shifted to foreign currency loans. But, from now to the end of this year, many enterprises will have to repay banks foreign-currency loans.
Current, the US dollar deposit rates on the currency market were averaged at between 5.25 percent – 5.5 percent per year. The US dollar loan rate of state –owned commercial banks stays at 5.5-6.0 percent per annum for short term loans and 6.0-7.0 percent per annum for medium and long-terms, while those are 6.0-8.0 percent per annum and 6.5-8.0 percent per year respectively at commercial joint stock banks.
Vietnam+